Montreal condo market has been getting a lot of attention this year, even more than the other major Canadian cities. The Quebec Professional Association of Real Estate Brokers (QPAREB) is expecting new records to be set by the end of 2019. They have revised their outlook on the Quebec resale market and are calling for “significant” increase in numbers of sales and price growth in each property category especially condos. By the end of March of 2019, the proportion of condo sales reached an all-time high when compared to the sale of single-family homes. Out of all the residential sales in Montreal, 56% were condos.
Buy or sell a Montreal condo
With supply dwindling and demand high, this is the perfect recipe for condo prices going up. Since the mortgage stress test was put in place and fewer people qualify for a single home on the Island of Montreal, many are turning towards a condo. I would even venture to say that you may consider this a good time to buy a condo before the prices skyrocket!
If you are “priced out of the market” and do not qualify for a single home, a condo may be your second option. With steady increases and a stable market, your condo should go up in value in the next 5 to 7 years, and you can perhaps sell it and move into a single home. In this situation the importance of choosing a neighborhood which is more affordable is key. Instead of buying in the Downtown core because this is the trendiest spot in Montreal, look at the “outskirt” neighborhoods such as Rivière des Prairies, Anjou, Lasalle, Lachine and even South Shore and North Shore of Montreal. This allows you to acquire more square feet for the same price or less as well as benefiting long term from the positive appreciation in the value your condo will gain.
How do I buy a good condo?
It is important to work with a realtor that knows the different sectors and choose the one that not only suits your current lifestyle but also has high rentability, in case you want to move and rent it out. This first condo purchase may catapult you into that single home you always dreamed of, if you buy the right one!
Since condos are so popular now, selling your condo may be a good idea. If you bought your condo in the right neighborhood at the right time, the value should have gone up over the time you owned it. This could be the perfect opportunity as a seller to liquidate your asset and move onto other investments and projects. You may consider refinancing the property and borrowing against the equity in order to create some monthly cash flow for yourself and keep the condo as an investment. As a seller you will have an upper hand is some neighborhoods but keep in mind that not all sectors are in a seller’s market. Speak to an experienced realtor to get your specific neighborhood statistics and find out what condos are selling for before deciding what to do.
Whether you are a buyer or a seller, or even an investor, the Montreal condo scene is one to keep your eye on very closely. There are signs of an overheating market according the Canada Mortgage and Housing Corporation (CMHC), which is defined when the ratio of sales to new listings is more than 70 percent. The growth of the Quebec economy and certain demographics, specifically the positive net migration and the increased number of permanent workers over the past 3 years are contributing to the strength of the Montreal market. The sales numbers are very strong on the Island of Montreal and the suburbs in the periphery such as South Shore and North Shore have shown increases in Median prices as well but still very affordable. For both buyers and sellers, there is a range of prices from the Eastern tip of Montreal where the median price for a condo is $181 000 to $575 000 for a condo in the city center such as Outremont.
Meet with your trusted realtor to look at all your options according to you needs and budget and make an informed decision.
Helen Akrivos is a Montreal real estate expert who is passionate about educating and inspiring everyone to succeed in real estate! She holds a Chartered real estate broker license and is President of North East Realties agency in Montreal. As a lecturer in the Residential Real Estate Program at College Lasalle, Co-Host of “The Real Estate Show” on CJAD AM800 radio and contributor to the MTL Times newspaper, Helen shares her stories of real estate success to help as many people as possible! E-mail your comments to email@example.com